Commerce Minister Simon O’Brien today expressed his delight at recent contract outcomes from Western Australia’s burgeoning iron ore sector.
“In just one week during November, the State’s major iron ore producers awarded more than $1billion worth of contracts to WA-based companies,” Mr O’Brien said.
“Fortescue Metals Group (FMG), MCC Mining WA Pty Ltd and Rio Tinto have contracted local companies RCR Tomlinson, AGC, Construction Industries Australia and Brierty to undertake work on their mines.
“The size and scope of these contracts demonstrates the benefits being generated by iron ore projects for the State's economy, and the diverse range of services being provided by competitive local companies.”
The Minister said major onshore projects run by companies like Rio Tinto were producing 80-90 per cent local content.
“There is an over-emphasis on one or two offshore projects when the stream of contracts flowing from onshore sectors such as iron ore is taken for granted. This perspective is wrong; a more holistic approach must be taken and onshore projects are creating opportunities for WA-based companies,” he said.
FMG awarded a $600million contract to RCR Tomlinson for engineering; procurement; and pre-commissioning of structural, mechanical, piping and electrical works, as part of the expansion of the Solomon Iron Ore Mine. Additionally, FMG has awarded Brierty a $60million contract for the construction of rail related to the Solomon Iron Ore Mine.
FMG also let a $247million work package to the Kietwit Australia Joint Venture to develop a wet ore handling plant at the group’s Cloudbreak Mine. Kietwit Australia is partnering with AMEC and AGC.
Also, between November 2-9, Rio Tinto awarded $52million in contracts to AGC to upgrade transport and transfer systems for the Brockman 4 mining project. The contract also covers design, installation and commissioning of an iron ore pilot plant at the Dampier Mine.
In the same period, MCC Mining awarded Construction Industries Australia a $50million service contract for the Sino Iron Project at Cape Preston.
Minister’s office - 9213 6400